The Manager, Companies Dear Sir, - ASX2008/04/30 · average grade using Kriging and Micromine v.11.0.1 software (Figure 3). Initial modeling shows that the mineralisation remains

30 April 2008 The Manager, Companies Australian Securities Exchange Ltd Electronic Announcement System Dear Sir,

AXIOM MINING LIMITED (ASX CODE: AVQ) ASX Announcement

Axiom March 2008 Exploration Update

Vietnam and North Queensland In accordance with Listing Rule 3.1, we attach the following. Yours faithfully

J.V. McCarthy Executive Director-Geology Sydney, Australia

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Axiom March 2008 Exploration Update 2

March 2008 Quarterly Exploration Update Drill Hole Assay Results Advance Axiom’s Projects

Vietnam and North Queensland HIGHLIGHTS

VIETNAM Assay results of drill core intercepts from beneath a large gold soil anomaly at Quang Binh continue to show persistent gold values ranging to over 1 g/t over very substantial widths (see figures 1, 2 and 3). The drilled extent of this porphyry style gold mineralisation supports the conclusion that a very large deposit is present that may be exploitable by simple open pit mining and heap leach processing methods.

Examples of wide intercepts are 18 m @ 0.45 g/t Au, 15 m @ 0.45 g/t Au and 26 m @ 0.41 g/t Au in hole XK43. These results are associated with surface and near surface drill core intercepts that average above 1 g/t Au, for example 6 m @ 1.24 g/t Au in XK38 from 43 to 49 m downhole.

A systematic drill program is warranted and has been designed for the Xa Khia-Mu Me prospect to provide systematic coverage for reserve/resource estimation and to produce representative samples of the gold mineralisation for metallurgical test work as part of a preliminary feasibility study.

Also on the Quang Binh project area, a new porphyry style gold target has been discovered at the Bach Dan prospect with intercepts in drill hole BD12 of 14 m @ 0.71 g/t Au, 7 m @ 0.71 g/t Au, 11 m @ 0.46 g/t Au and 6 m @ 0.51 g/t Au from 166 m downhole. Bach Dan is located 4 km south of Xa Khia-Mu Me (see figure 4).

At the Vit Thu Lu prospect, approximately 8 km southwest of Xa Khia-Mu Me, a large 2.5 km x 500 m and strong gold soil geochemical anomaly (large contiguous areas above 250 ppb Au) has been outlined and a drill program designed (see figure 5).

The first two-year period of the Quang Binh MEL expired on February 18 and the Company is in the process of having the MEL extended to undertake the drill programs and to prepare an application for a Mining Licence.

NORTH QUEENSLAND Assay Results from the first hole of a 9 hole infill drill program on the Cardross Mining Lease (ML), CA07DD16 indicate several zones of strongly anomalous Cu and Ag, with the best assays being 1m @ 2.2% Cu, 32.6 g/t Ag & 0.38 g/t Au from 134m, 4m @ 0.62% Cu & 11.5 g/t Ag from 150m, and 1m @ 0.64% Cu & 12.5 g/t Ag from 167m. Sulphide intercepts from the other 8 holes are being assayed or prepared for assay (see figure 7). Late in the December quarter Exploration Permits (EPM) were granted and compilation of historical exploration commenced. In addition to the 2 km strike continuation of mineralisation on the mining lease (ML), a large number of areas prospective for copper and/or gold mineral deposits are evident that will be subject to fieldwork including mapping, soil sampling and Induced Polarization geophysical surveys.

Following entering an option to acquire 100% of the exciting Nightflower property (see release dated 15/01/08), which is contiguous with Kagara Zinc’s Mungana-Red Dome holdings and Axiom’s OK tenements preparations are underway to complete infill and exploration drill holes on the Digger Lode (see figure 8). Field investigations, including mapping and geophysical surveys are planned for the 3 km long Nightflower Fault (host to the Digger Lode) and other prospective target areas. Drilling designed to define resources at the Digger Lode is planned for May-June conditional on availability of drilling equipment.

A 3D model of the OK Mines VMS deposit has been prepared based on historical data and Axiom’s recent drill programs (figure 9). This model shows a clear target for future drilling.

SOLOMON ISLANDS – AXIOM BOGUTU NICKEL Progress continues to be made to resolve third party legal hurdles so that the application by the traditional landowners for prospecting licences over the San Jorge and Santa Isabel Island laterite nickel properties can be processed. Axiom fully supports the landowners activities and looks forward to a positive outcome that will permit cooperative development of this major project.

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VIETNAM Quang Binh MEL1 Project New assay data (see table 1) continues to expand the size of the gold deposit being

delineated at the Xa Khia-Mu Me prospect. Although low grade, the large size of the mineralised zones based on surface sampling and broad spacing of drill intercepts suggest major open pit operations and a heap leach treatment option deserve serious investigation.

Based on interpretation of controls on the gold mineralisation from geological and structural mapping and the drilling, the Xa Khia-Mu Me gold prospect has been divided into 5 domains of mineral deposition. Each domain is separated by N-S and NE-SW trending faults (figures 1 and 2).

An infill drill hole program has been designed to provide detailed drill hole assay data for completion of resource modeling, grade/tonnage estimation and metallurgical test work as part of preliminary feasibility studies.

Higher-grade gold-silver replacement style mineralisation under the Xa Khia open pit is being modeled to assist with targeting future drilling and for calculation of tonnage and average grade using Kriging and Micromine v.11.0.1 software (Figure 3).

Initial modeling shows that the mineralisation remains open in several directions and further drilling will be required.

Wide gold enriched zones intersected in drill hole BD12 (see Table 1 and Figure 4) have confirmed the presence of porphyry style gold mineralisation at Bach Dan, approximately 4 km south of the Xa Khia-Mu Me prospect. Earlier exploration holes had intersected narrower zones of gold enrichment. Further drilling is now warranted and a program will be designed once remaining assays from Bach Dan drilling are received from the laboratory.

A very large and strong gold soil anomaly has been delineated at the Vit Thu Lu prospect and an exploration drilling program has been designed (see Figure 5). The discovery and delineation of this anomaly is very significant as it may represent a major expansion in the resource inventory being developed within the Quang Binh MEL.

Quang Tri MEL Application Status As previously reported in the December Quarterly, on 12 December 2007 the Company

was formally issued a Certificate of Investment for establishment of a 100% foreign owned Vietnamese company in the Province of Quang Tri. This provides the Company with a wholly owned entity that has equivalent legal status and rights as Vietnamese enterprises.

All approvals for the Quang Tri MEL (see figure 6) have been signed off with the final step for MEL grant being an Assessment Meeting where the licence is formally notified for issue. It is anticipated this meeting will take place in May.

Exploration of the highly gold prospective Quang Tri area will commence immediately on the issue of the MEL.

Acquisition or Assessment of New Mineral Prospects in Vietnam An application document, accompanied by all required Provincial departmental approvals

has been completed and submitted to the Department of Geology and Minerals for a new MEL in the Province of Khanh Hoa, southern Vietnam.

The application, for gold and associated metals, covers a large area of artisan gold workings where the authorities stopped mining in the early 1990’s.

Gold is hosted from near surface by quartz-sulphide veins and by highly altered volcaniclastics and intrusives beneath an unconformable capping unit. Exploration target is an pen pit bulk mineable gold deposit

1 MEL – Mineral Exploration Licence in Vietnam. The Quang Binh MEL is currently under application for an extension in time to allow time for information needed for a Mining Licence application to be prepared.

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Axiom geological teams have undertaken field assessments on eight new project areas and have observed alteration and sulphide zones that contain gold and/or copper and lead-zinc-silver mineralisation. Samples have been collected from these areas for assay. MEL applications over one or more of these areas will be considered following compilation of the field observations and receipt of the assay data.

Table 1 Compilation of recent gold assay data showing intercept values

typifying porphyry style gold deposits on the Xa Khia – Mu Me and Bach Dan prospects, Quang Binh.

Hole No. From (m)

To (m)

Down-Hole Interval

(m)

Gold (g/t)

Xa Khia – Mu Me Prospects

XK36 12 15 3 0.52 19 25 6 0.49 39 40 1 0.74

XK37 106 109 3 1.45

XK38 43 49 6 1.24 54 56 2 1.04

XK39 0 4 4 1.17 XK41 38 42 4 1.47 45 51 6 0.48 54 56 2 0.50 89 96 7 0.54

XK43 102 120 18 0.44 132 147 15 0.45 148 174 26 0.41 Bach Dan Prospect

BD12 166 180 14 0.71 183 190 7 0.71 194 205 11 0.46 212 218 6 0.51 227 229 2 0.96 271 273 2 1.32

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Figure 1 Xa Khia – Mu Me prospect showing planned infill resource definition drill hole locations (purple dots) in relation to

existing exploration holes (red dots) in the 5 fault bounded domains. The drill hole locations are plotted overlying the strong soil gold geochemical anomaly.

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Figure 2 Section A-B, showing continuity of porphyry style gold mineralisation in a zone

that is open to the north northeast, west and below depth of drilling. See Figure 1 for location.

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Figure 3 3D block model of Xa Khia replacement style gold mineralisation under the Xa Khia open pit. Gold grades are color-coded and

in grams per tonne. The model confirms that mineralisation is open in several directions and will require more drilling to fully define.

Looking Towards NNE

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Figure 4 Bach Dan prospect showing location of the wide gold zone intersected in hole BD12 (see assays Table 1). This

indicates the presence of a porphyry style gold zone not previously encountered on the prospect that will be the target of future drilling.

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Figure 5 Map showing locations of exploration (purple dots) and infill (yellow dots) drill holes planned to test the

large and strong soil geochemical anomaly on the Vit Thu Lu prospect. Given its size, strength and continuity the gold anomaly provides a highly exciting drilling target. Vit Thu Lu is located approximately 8 km southwest of the Xa Khia-Mu Me prospect.

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Figure 6 Map of the Quang Tri MEL application area showing mineralised trend, known rhyodacite intrusive centers and selected rock chip assay results.

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NORTH QUEENSLAND Cardross Project

An exceptional North Queensland wet season, which delivered nearly 1400 mm of rain in the region, has delayed all fieldwork programs. The area dried sufficiently to allow access in early April.

Phase 2 diamond drilling at Cardross commenced in early December to test for continuity and extensions to the mineralisation intersected in previous drilling (Figure 7). The drill program comprised 9 holes for a total of 2,136 m of drilling. This brings the Company’s combined total to 5,367 m of diamond drilling at Cardross to date.

Drilling intersected multiple chalcopyrite – pyrite – arsenopyrite - quartz ± magnetite veins, with visual estimates indicating significant concentrations of copper (silver and gold likely). Assays have been received for one hole - CA07DD16. Intercepts from three of the other holes have been sent for assay and sulphide sections from the remaining holes will be sent to the lab within the next month.

Results from drill hole CA07DD16 indicate several zones of strongly anomalous Cu and Ag, with the best assays being 1m @ 2.2% Cu, 32.6 g/t Ag and 0.38 g/t Au from 134m, 4m @ 0.62% Cu and 11.5 g/t Ag from 150m, and 1m @ 0.64% Cu and 12.5 g/t Ag from 167m.

Work on the Cardross ML is currently on hold until receipt of the full set of assay results from the Phase 2 drilling program. Exploration will continue outside the ML that will focus along strike to the NE and SW. Soil sampling, followed by a dipole-dipole IP/resistivity geophysical survey is planned to assess the area immediately southwest for 2 km along the Cardross Shear. The two surveys will help focus areas for further drilling outside the Cardross ML.

Review of previous exploration for the greater Cardross region, where Ozmin now has an extensive tenement holding, shows potential for Cardross-style copper – silver - gold mineralisation elsewhere along major structural corridors, and also for copper and/or gold mineralisation in and around breccia and intrusive stocks of Carboniferous age. The intrusives in the region are interpreted to be the same suite linked to the nearby Red Dome and Mungana Au-Cu porphyry and related base metals deposits. Historical mining prospects that have immediate focus are Split Rock, Mountain Maid, Spaniard and Arizona.

The Company holds three tenements to the north of the main Cardross area where similar basement rocks are interpreted to occur thinly covered by younger sedimentary and volcanic rocks. Extensions to large structural corridors favorable for mineralisation (e.g. extensions to the Cardross – Muldiva Structural Corridor and splays of the Palmerville Fault) are interpreted to continue under the younger cover.

Detailed interpretation of airborne magnetic data is planned for the June quarter to help provide targets for ground follow-up.

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Figure 7 Drill hole locations on the Cardross Mining Lease. Exploration will now progress to the NE and SW along the Cardross Cu mineralisation envelope trend.

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OK Project Further to the encouraging results announced in the December quarterly report, Ozmin has

re-logged key drill holes and conducted a detailed reassessment of the geology to produce a 3D geological model for the mineralisation in the OK Mines area (Figure 8).

High-grade copper - zinc mineralisation is interpreted to have formed as Volcanic Massive Sulphide (VMS). The mineralisation has been folded into a steeply plunging synform and appears to lie above a distinctive chert unit that marks the footwall to high-grade copper - zinc bearing massive sulphide. The 3D geological model provides a clear target for future drilling down plunge of the existing mineralisation. Drilling is planned following further drill core re-logging and additional mapping in the OK North area, and the area between OK North and OK Mines to improve geological and structural understanding of sulphide intercepts in these areas.

Commencement of a regional reconnaissance mapping, stream sediment and rock chip sampling program south of the OK prospects was delayed due to the abnormal wet season. The field program is aimed at defining areas of mineralisation possibly associated with the Ticklehim Creek Dyke Swarm and will target gold and base metals. Fieldwork is now expected to commence in May.

Figure 8 3D section view of OK Mine Cu-Zn mineralisation model. Drill holes are displayed with Cu assays (pink >1% Cu). The bronze surface represents the interpreted footwall to mineralisation represented by a folded sedimentary chert unit. The blue arrow represents the plunge of mineralisation and the area in red approximates the drill target zone.

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Nightflower Project Drilling during the March quarter of 2008 was delayed due to the wet season causing road

access to be cut. Drilling is now not likely to commence until May – June and earthworks have been completed to restore the access track to the prospect.

Prior to the drilling, the opportunity will be taken to conduct geological mapping, geochemical sampling and an IP/resistivity survey over the Digger Lode, and further along the Nightflower fault given its established potential to host similar lodes and related porphyry deposits. This work will allow refinement of the existing drill targets and is expected to deliver additional drill targets.

The drilling program includes four infill drill holes on the lead – zinc – silver – gold bearing Digger Lode to confirm size, continuity and grade of the Lode as reported from previous exploration (see figure 9). Following on from the shallower holes, three deeper holes are planned to test for down plunge extensions of the Lode and to test for the presence of related gold-copper porphyry mineralisation.

Exploration plans also include reconnaissance mapping and stream sediment sampling over other areas within the regional tenement given its obvious prospectivity.

Figure 9 Schematic geological long section (looking west) of the Digger Lode deposit. Previous drill hole intercepts show thickness and Pb – Ag grades. Red circles identify planned infill and the deeper exploration drill holes.

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White Hills Project

A 100 x 100 m spaced soil sampling program (totaling 500 samples) commenced on 8 April, which covers an area approximately 2 x 3 km over the White Hills wider prospect area (see figure 10). Start of sampling was delayed by the heavy wet season.

The objective of the survey is to identify anomalous zones of gold in soil, particularly in areas with limited outcrop, to assist interpretation of geological mapping and rock-chip sample results and prioritize drill targets. Additional rock type and alteration mapping will take place concurrently with the soil sampling program.

A proposal has been submitted for appraisal to the Department of Mines and Energy (DME) for a Collaborative Drilling Initiative (CDI) grant to the amount of $115,000. The CDI allows exploration companies to apply for grants up to the value of $150,000 or 50% of direct drilling costs for an exploration program (whichever is the lesser amount).

Targeted mineralisation at White Hills is gold associated with quartz veins within the Cretaceous-aged Granodiorite (see figure 11). A conceptual model of the mineralisation style is depicted in figure 3. Drilling of the White Hills targets is expected to be conducted in July – August.

Figure 10 White Hills Project showing locations of mapped gold prospects and soil sample program coverage.

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Figure 11 A conceptual model for gold deposit/mineralisation formation and drill targets on the White Hills project.

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Mt Molloy Project Assay data has been received for all 5 diamond drill holes reported last quarter (location of drill holes

depicted in figure 12). Three holes (MM07DD03, 04 & 05) contain significant copper – zinc - silver mineralisation and support assays reported in nearby historical drill holes.

Drill hole MM07DD03 contains a wider intercept of 43 m @ 0.4% Cu and 0.23% Zn from 30 m, which included 6 m @ 1.1% Cu and 0.22% Zn from 64 m. Holes MM07DD04 & 05 contain several zones up to 6 m wide of similar tenor copper and/or zinc to that over the wider zone in hole MM07DD03 that appear to represent the same mineralised horizon. Drill holes MM07DD01 and 02 were drilled below the historically mined high grade zinc – copper - silver lode however, both holes failed to intersect significant mineralisation and appear to have closed off mineralisation in that area at depth.

Further exploration is planned for the remainder of the tenement throughout 2008, and will initially focus on the strong copper - zinc soil anomalies in the north west of the prospect area (see figure 4).

Figure 12 Plan showing projection of subsurface historic

underground workings, the 5 drill holes completed by in late 2007 and the zones of anomalous Cu-Zn-Au in soil.

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For further information: Jake Gray Jack McCarthy Doug Macdonald Director & CEO Director Geology Capital Group Axiom Mining Axiom Mining 61 424 255 959 61 2 9276 1600 61 2 9276 1600 Geological information presented in this report is based on exploration results compiled by Dr Mustafa Cihan in respect of the Vietnamese tenements, Mr John Weil and Mr Glen Little in respect of the Queensland tenements and Mr John McCarthy for the Group. Dr Cihan, Mr Little and Mr McCarthy are Members and Mr Weil a Fellow of the Australasian Institute of Mining and Metallurgy and they have sufficient experience that is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which they are undertaking to qualify as competent persons in accordance with Clause 8 of the JORC Code. Dr Cihan, Mr Weil, Mr Little and Mr McCarthy are full time employees of the Company and consent to inclusion in this report of the matters based on their information in the form and context in which it appears. Statements in this document that are forward-looking and involve numerous risks and uncertainties that could cause actual results to differ materially from expected results are based on the Company’s current beliefs and assumptions regarding a large number of factors affecting its business. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent or likely impact, (ii) the publicly available information with respect to these factors on which the Company’s analysis is based is complete or accurate, (iii) the Company’s analysis is correct or (iv) the Company’s strategy, which is based in part on this analysis, will be successful.

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Notes for editors and analysts:

AXIOM PROVIDES EXCITING STRATEGIC OPPORTUNITIES AUSTRALIA AND VIETNAM

Axiom Mining Limited (ASX code: AVQ) www.axiom-mining.com

Advanced Mineral Projects – Australia and Vietnam

QUEENSLAND

Targeting Au-Cu-Zn-Ag

KEY PROJECTS (100%) Cardross – Cu-Au-Ag (Zn) project. Historic production 24,000t @

8.4% Cu, 2.9g/t Au and 113g/t Ag. Mineralisation open at depth and along strike off the ML. IP anomaly coincident with mineralised zone on ML. Exploration continuing on Cardross trend to the NE and SW.

OK Mines – historic production 87,000t @ 9.2% Cu plus Au-Ag credits. VMS deposit identified. Thick 62 m zone averaging 0.65% Cu and 0.36% Zn in recent drill hole. 3D model to target next drilling phase.

Nightflower – Digger Lode Ag-Pb-Zn-Au deposit as well as porphyry Au-Cu potential. Drilling planned second quarter 2008. Early mine development potential.

Mt Molloy – historic mine with best drill intercept from recent Axiom drilling - 43 m @ 0.4% Cu and 0.23% Zn incl. 6 m @ 1.1% Cu and 0.22% Zn. Large Cu-Zn soil anomaly to test.

White Hills – recent geological mapping and outcrop sampling produced up to 34.3 g/t Au and 19.4 g/t Ag. Soil sampling and drill testing for bulk tonnage gold-silver deposit planned for 2008.

Pinevale – copper mineralisation hosted by broad quartz veined shear zone that extends for at least 700 m and is 50 m in width. Under explored area.

VIETNAM

Targeting Au-Ag-Cu-Pb-Zn

KEY PROJECTS

Quang Binh Gold (56% to 70%) Quang Tri Gold (80%) Both properties carry potential similar to gold deposits at Sepon,

Laos by Oxiana – approximately 45 km west across the border. Au-Ag-base metals sediment hosted by “reactive rocks”. Drilling two deposit types – high-grade sediment hosted Au-Ag and large lower grade Au porphyry style.

Pu Sam Cap (PSC) – “major alkalic mineralising event”. JV target 6.6 million ounces plus Au deposit. Operates under the “Newmont Venture Agreement”.

Project pipeline deliverable using valuable proprietary database.

Proven Team An experienced team of directors and management with extensive exploration track records. Executive directors have been involved in Vietnam for over 15 years.

Axiom Mining

Exciting exploration upside!

Pre-IPO; Nov 2006 IPO; Aug placement: Funds raised A$18,279,967

Total shares on issue - 208,402,681 Cornerstone Investor (VOF) shares - (19.5%) 40,500,000 Management shares - (25.5%) 53,045,348

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Documents

The Manager, Companies Dear Sir, - ASX2008/04/30 · average grade using Kriging and Micromine v.11.0.1 software (Figure 3). Initial modeling shows that the mineralisation remains